By Glen Hallick, MarketsFarm
WINNIPEG, July 14 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Tuesday, recouping nearly all of yesterday’s losses.
There was support from the Chicago soy complex, as well as Malaysian palm oil. European rapeseed was largely steady.
By mid-afternoon the Canadian dollar was lower at 73.45 U.S. cents, compared to Monday’s close of 73.71.
A trader said canola on the Prairies appears to be good shape as August approaches. He estimated crops throughout the region to be in approximately 72 per cent good to excellent condition. That should keep a lid on larger gains.
There were 10,895 contracts traded on Tuesday, which compares with Monday when 16,356 contracts changed hands. Spreading accounted for 4,480 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Canola Nov 479.20 up 1.80
Jan 486.70 up 1.90
Mar 492.00 up 1.80
May 495.70 up 2.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Tuesday, due to lower crop ratings and a sale to China.
The United States Department of Agriculture (USDA) released its weekly crop progress report on Monday. For the week ended July 12, soybeans blooming were at 48 per cent, up from 31 per cent the previous week and eight points ahead of the five-year average. Setting pods were at 11 per cent, up from two the week before and pretty much within the average. Soybean conditions fell three points to 68 per cent good to excellent.
The USDA announced a private sale of 129,000 tonnes of soybeans to China with delivery scheduled for the 2020/21 marketing year.
Several of China’s imports increased significantly during January-June, including soybeans, according to the General Administration of Customs. With shipments primarily coming from Brazil, China imported more than 45 million tonnes of soybeans, for an increase of 18 per cent.
CORN futures were steady to lower on Tuesday, as favourable weather for the U.S. Corn Belt and large stocks erased earlier gains.
The USDA announced a private sale of 1.76 million tonnes of corn to China, which are to be delivered during the 2020/21 marketing year.
In the USDA crop progress report corn silking reached 29 per cent, up from 10 the previous week. The five-year average is 32 per cent. Corn dough was at three per cent and on par with the average. The condition rated 69 per cent good to excellent for a drop of two points from the previous week.
WHEAT futures were mixed on Tuesday, with gains for Chicago due to short covering. There were losses for Kansas City while Minneapolis was firm.
The USDA reported 80 per cent of spring wheat has headed, up from 63 per cent. The average is 85 per cent. The condition rated 68 per cent good to excellent, a slip of two from the previous week.
The U.S. winter wheat harvest reached 68 per cent complete for a gain of 12 points from the previous week. Also, the progress is two up on the five-year average.
In international purchases, Jordan bought 60,000 tonnes of optional origin wheat, Japan issued a tender for 127,000 tonnes, and Egypt purchased 144,000 tonnes from Russia.